1. What is HDFC Personal Loan Interest?

HDFC Bank offers personal loans with interest rates starting at 10.50% per annum. The interest is calculated using simple interest formula based on principal amount, interest rate, and time period.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time period in years

Explanation: The formula calculates the total interest payable over the loan term without compounding.

3. Importance of Interest Calculation

Details: Understanding interest helps borrowers compare loan offers, plan repayments, and assess affordability before taking a personal loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (minimum 10.50%), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is HDFC's current personal loan interest rate?
A: Rates start at 10.50% p.a. but vary based on credit profile, loan amount, and tenure.

Q2: Is this simple interest or compound interest?
A: This calculator uses simple interest. HDFC personal loans typically use reducing balance method (compound interest) in reality.

Q3: What is the maximum loan amount from HDFC?
A: HDFC offers personal loans up to ₹40 lakhs depending on income and creditworthiness.

Q4: What are the processing fees?
A: HDFC charges up to 2.50% of loan amount as processing fee plus applicable taxes.

Q5: How can I get lower interest rates?
A: Maintain high credit score (750+), stable income, and consider shorter tenures for better rates.